Salient to Investors:

Winners in the Fiscal Cliff deal:
  • Rich people because raising the threshold for higher taxes from $250,000 to $450,000 because taxes are assessed on marginal income.
  • Red State Democrats because they duck partisan controversy, which is right where they want to be.
  • The unemployed people.
  • Doctors because the deal completely punts on all kinds of substantive issues related to Medicare reimbursement rate issue.
  • The elderly.


  • Grand Bargaineers because the win for the elderly was a catastrophic defeat for the grand bargain.
  • Fighting Democrats because the White House chose not to risk further re-enforcing a sense that the president is a weak poker player.
  • Grover Norquist.
  • The economy because the expiration of the payroll tax holiday means that taxes will go up on working people
  • The markets because for the next 2 months they have the debt ceiling standoff lurking over their head. 

Read the full article at

Click here to receive free email alerts of articles as soon as they are posted.